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The following extracts are taken from the financial statements of Arnott Ltd: Balance sheet as at Assets PPE 31 December 2018 31 December 2017 '000 '000 Land 1,844 1,757 7,550 6,862 9,394 8,619 Plant and equipment Total PPE at cost Accumulated depreciation Net PPE (3,605) 5,789 (3,502) 5,117 Notes: 1. No land was sold in 2018 2. The company uses the cost model for depreciation. Depreciation on PPE for the year 2018 was 349,000 3. During 2018, the company recorded an impairment loss of 98,000 on a group of machines. The impairment test conducted by the company Controller during the year revealed that the machines had a value-in-use of 1,644,000. The machines' fair value less selling costs were estimated to be 1,560,000. 4. During 2018, the company purchased new equipment for cash. No other purchase or disposal of plant and equipment occurred during the year. Required: a) Calculate the amount spent on acquiring new land during the year 2018 b) Calculate the following for the impaired machines: i. The original cost before impairment ii. The accumulated depreciation before impairment c) Calculate the cash spent on acquiring new equipment in 2018 You may find the following table helpful for calculating parts b and c: Assets P & E-Cost Cash P& E-Ace Dep Equity Profits (income statement) '000 f'000 f'000 '000 Opening bal 1.1.18 The following extracts are taken from the financial statements of Arnott Ltd: Balance sheet as at Assets PPE 31 December 2018 31 December 2017 '000 '000 Land 1,844 1,757 7,550 6,862 9,394 8,619 Plant and equipment Total PPE at cost Accumulated depreciation Net PPE (3,605) 5,789 (3,502) 5,117 Notes: 1. No land was sold in 2018 2. The company uses the cost model for depreciation. Depreciation on PPE for the year 2018 was 349,000 3. During 2018, the company recorded an impairment loss of 98,000 on a group of machines. The impairment test conducted by the company Controller during the year revealed that the machines had a value-in-use of 1,644,000. The machines' fair value less selling costs were estimated to be 1,560,000. 4. During 2018, the company purchased new equipment for cash. No other purchase or disposal of plant and equipment occurred during the year. Required: a) Calculate the amount spent on acquiring new land during the year 2018 b) Calculate the following for the impaired machines: i. The original cost before impairment ii. The accumulated depreciation before impairment c) Calculate the cash spent on acquiring new equipment in 2018 You may find the following table helpful for calculating parts b and c: Assets P & E-Cost Cash P& E-Ace Dep Equity Profits (income statement) '000 f'000 f'000 '000 Opening bal 1.1.18

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